The second Trump administration has brought significant legal changes for employers, including eliminating certain affirmative action obligations for federal contractors. On Jan. 21, President Donald Trump revoked Executive Order 11246, which, since 1965, required federal contractors to create Affirmative Action Plans (AAPs) for women and minorities. This revocation was part of a larger executive order, entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”
What does this mean for your business?
If you are a federal contractor (or subcontractor), you are no longer required to complete AAPs for women and minorities. It is important to note, however, that you still have AAP obligations for protected veterans (under VEVRAA) and individuals with disabilities (under Section 503 of the Rehabilitation Act) – these programs are still required and enforceable.
If your business has contracts with state or other local governments, you may still have affirmative action obligations for women and minorities (for example, the states of Wisconsin or Minnesota).
All employers, whether contractors or private employers, are still governed by the Civil Rights and Equal Employment Opportunity Acts, which prohibit discrimination based on a number of protected classes, including sex and race. The new administration has stated that it plans to target DEI programs that violate anti-discrimination laws, including in the private sector.
Where do you go from here?
Federal contractors should continue to fulfill their affirmative action obligations for individuals with disabilities and protected veterans. Keep an eye out for new or additional reporting requirements on the horizon, pending guidance from the Attorney General expected later this year.
Other federal reporting requirements, like EEO-1 or VETS-4212, are still in place.
All employers need to continue to ensure that their personnel practices are free from discrimination, including hiring, firing, and compensation practices, to name a few. Mitigating this risk can include conducting adverse impact analyses, compensation reviews, job description reviews, reviewing talent acquisition processes, and auditing all other human resource functions, including DEI programs, for compliance and non-discrimination.
Need some help?
MRA – The Management Association – has completed thousands of AAPs for government contractors and is ready to answer your questions about these regulatory changes. With over 200 HR experts on staff, we help more than 5,000 businesses increase compliance and reduce risk — providing peace of mind in a shifting business landscape. Contact our Moline office today: Ashley Gomez, member relations manager, at [email protected] or (309) 764-8354.
(Hilary Hauser is vice president of HR Consulting Services at MRA.)
